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NPAs on the Rise Under MUDRA Scheme
January 15, 2019
The central bank RBI has raised concerns over the increasing non-performing assets (NPAs) under the government’s MUDRA loan scheme that aims to empower the small and micro enterprises across the country.
According to sources, the Reserve Bank of India (RBI) has warned that the loans offered under Pradhan Mantri Mudra Yojana (PMMY) could become the next biggest sources of NPAs that are already hurting the banking sector.
The government records show that as many as ₹2.46 trillion worth of loans were disbursed under the PMMY scheme in FY18.
According to sources, the Reserve Bank of India (RBI) has warned that the loans offered under Pradhan Mantri Mudra Yojana (PMMY) could become the next biggest sources of NPAs that are already hurting the banking sector.
The government records show that as many as ₹2.46 trillion worth of loans were disbursed under the PMMY scheme in FY18.
Photo credit: Dr PS Sahana * Kadamtala Howrah on Visualhunt.com / CC BY
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